Fillmore Case Essay
Filmore Furniture Ltd. manufactures colonial maple furniture. The company was incorporated in 1970 by Fred Filmore, who had been the sole proprietor prior to that. In 1983, Fred Filmore retired and sold his business to his only son Phil, age 38, for a small sum. That year, annual sales totalled $1,300,000.
Phil Filmore was an aggressive manager and strategist. He modernized the plant, introduced new product designs and accessories such as mirrors and lamps, and implemented new marketing strategies and merchandising ideas. These innovations were quite successful, and helped the company to establish a good reputation in the furniture industry. From 1983 to 1993, sales income increased to $5,100,000, and the …show more content…
During the snowstorms of early 1999, Phil Filmore died suddenly in a car accident. He left his entire estate, including his 63 percent of the company's shares, to his wife, Lucinda. Phil's life insurance provided a disappointingly small amount of money for Mrs. Filmore. At the time Phil took out the policy many years before, the family's lifestyle had been more modest, the cost of living had been much lower and interest rates